Schaff Trend Cycle Indicator MT4
Schaff Trend Cycle Indicator for MetaTrader4
The Schaff Trend Cycle Indicator for MetaTrader4 merges the core functionalities of two widely used indicators—MACD (Moving Average Convergence Divergence) and the Stochastic Oscillator. This tool is engineered to identify trend reversals and momentum extremes with enhanced sensitivity. Readings below 25 often signal an oversold market, while values above 75 highlight overbought conditions. This makes the STC highly reliable for early trend recognition and for pinpointing optimal entry or exit points in trending markets.
«Indicator Installation & User Guide»
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Indicator Table
| Indicator Category | Oscillator – Trend Detection & Momentum |
| Platforms | MetaTrader 4 |
| Trading Skills | Suitable for Beginners |
| Indicator Types | Overbought / Oversold – Reversal |
| Timeframe | Works Across Multiple Timeframes |
| Trading Style | Scalping, Swing, Day Trading |
| Trading Instruments | Forex – Digital Assets – Equities |
On the chart displayed below, the 4-hour timeframe of XAU/USD (Gold) is analyzed. In the left segment, the STC indicator climbs into the overbought zone, suggesting a potential downtrend and shorting opportunity. In the right segment, the indicator moves into the oversold region, signaling a bullish shift, suggesting potential buying setups.
Overview
The Schaff Trend Cycle (STC) indicator functions through a fusion of exponential moving averages and a stochastic model. It processes price data to generate a cycle oscillator that fluctuates within a 0–100 scale. Crossing above 75 generally points to overbought market phases, while a dip below 25 indicates potential undervaluation. This tool can be used alongside support/resistance areas, trendlines, and other confluence tools for more refined strategies.
Bullish Setup Conditions
In the 15-minute chart of GBP/USD illustrated below, the STC indicator dips beneath the 25 mark and begins to rise, indicating a bullish signal. Traders may use this setup in combination with bullish chart patterns or price action strategies to validate entry points.
Bearish Setup Conditions
The WTI Crude Oil 15-minute timeframe example showcases the STC reaching above 75, indicating a likely price decline. This bearish condition allows traders to seek short entries using confirmation tools such as bearish candlestick formations or resistance rejection.
Schaff Trend Cycle Indicator Settings
- Schaff Period: 10
- Fast EMA Period: 23
- Slow EMA Period: 50
Tip: To draw horizontal lines at the 25 and 75 levels, simply add these values under the Levels section in the indicator’s configuration settings.
Summary
The Schaff Trend Cycle Indicator for MetaTrader4 offers a dynamic way to spot market turning points with enhanced precision. Its combination of momentum-based logic and cyclic timing reduces false signals and clarifies trade opportunities. While it performs across all timeframes and instruments, it’s especially effective when integrated with other technical tools for confirmation. Traders should consider applying this indicator with caution in lower timeframes due to potential noise amplification.
